Bitcoin (BTC) price briefly broke the $ 14,100 resistance today, reaching a new 2020 high of $ 14,259 before reversing to try again at $ 14,100 support.
While this level represents critical resistance, the data shows that the Bitcoin whales are in no hurry to close, as they expect the rally to continue today. This strong confidence comes despite growing uncertainty about the outcome of the US presidential election, and it appears that market participants are expecting the price of Bitcoin to rise regardless of who wins the election.
Another sign of Bitcoin optimism is a record $ 215 million inward flow into the Grayscale Bitcoin Trust last week. This indicates that institutional investors along with whales are also optimistic about Bitcoin’s outlook.
If investors continue to invest in shades of gray with the current interest rate, the fund could own about 2.7% of the current supply of bitcoins within three weeks.
During the bull market in 2017, the spot market was the main driver of Bitcoin’s price movement. But since then, the volume of cryptocurrencies has skyrocketed, according to a report by Kraken in November.
Spot trading volumes peaked at $ 570 billion in the first quarter of 2018, but declined “to $ 104 billion after nearly two years,” but “nominal derivative volumes rose sharply from less than $ 6 billion in the second quarter of 2017 to more than Of 1. “7 trillion by the third quarter of 2020,” the reports added.
While the data indicates greater participation by professional traders and institutional investors, do the specifications predict further growth in Bitcoin and altcoins?
Let’s take a look at the top 10 cryptocurrency maps to find out.
Bitcoin / USD
The bears haven’t even been able to push Bitcoin (BTC) into a 20-day exponential moving average ($ 13,057) in recent days, which showed that the bulls have been slow to make a profit. This could attract a fresh round of buying, pushing the price to a new 2020 high of $ 14,259 today.
Bullish moving averages and RSI indicators are in the overbought zone indicating that bulls are controlling the market. If they manage to keep the price above $ 14,102, the next stage of the rally will likely start. Next big resistance approaches $ 16,200.
However, the RSI is still showing signs of negative divergence, which usually serves as a strong warning signal that the momentum might be depressed. But in strong trends, the divergence can be a false signal if the price is not lower.
This bullish view will be invalid if the price falls from the current level and the BTC / USD pair falls below its 20-day moving average.
This move indicates that the bears are trying to return, and will likely gain strength if the pair falls below the $ 12,460 support.
ETH / USD
The bulls bought lower against the rising line on Nov 3rd and then continued to break the downtrend and resistance at $ 395 today. This indicates that the Short Term Correction in Air (ETH) may be over.
The 20 day moving average ($ 388) is starting to rise, and the RSI has moved into positive territory, indicating that the bulls have an advantage. If they manage to push the ETH / USD pair above the $ 420, the rally might continue to $ 450 and then to $ 488,134.
This bullish sentiment is nullified if the pair reverses current levels or upper resistance and dips below the 50-day SMA ($ 372).
XRP / USD
Bulls bought lower again at support of $ 0.2295 on Nov 3, but failed to push XRP above the moving average. This indicates that the bears are aggressively defending this resistance.
The decline in the 20-day moving average ($ 0.244) and the relative strength index (RSI) indicate that the bears are in control.
If they manage to fall below $ 0.2295, the XRP / USD pair could drop to $ 0.219712. A break below this support could resume the downtrend with next support at $ 0.19.
Contrary to this assumption, there is likely to be more days of movement within the range if the pair bounces off current levels and rises above the moving average.
BCH / USD
Bitcoin Cash (BCH) fell to $ 231.93 on Nov.3, but buyers bought the drop seen from the long tail of the candlestick. Buyers went again today and bought the drop to $ 230.90.
This strong bounce indicates that the bears are trying aggressively to defend support up to $ 231.93. However, the 20-day moving average ($ 255) and the RSI below 42 indicate bears on the team.